FOR IMMEDIATE RELEASE
Patrick H. Hawkins
Chief Executive Officer
Roseville, MN 55113
Kathleen P. Pepski
Chief Financial Officer
HAWKINS, INC. REPORTS
FOURTH QUARTER, FISCAL 2015 RESULTS
Minneapolis, MN, May 27, 2015 – Hawkins, Inc. (Nasdaq: HWKN) today announced fourth quarter and full-year results for its fiscal year ended March 29, 2015. Sales of $364.0 million for fiscal 2015 represented an increase of 4.5% from $348.3 million for the prior fiscal year. Net income was $19.2 million for the year, or $1.81 per fully diluted share, compared to net income of $18.1 million, or $1.71 per fully diluted share, for fiscal 2014.
For the fourth quarter of fiscal 2015, the Company reported sales of $93.3 million as compared to $85.2 million for the same period a year ago. Net income for the fourth quarter of fiscal 2015 was $3.9 million, or $0.37 per fully diluted share, compared to net income of $4.3 million, or $0.40 per fully diluted share, for the same period in fiscal 2014. The LIFO method of valuing inventory increased gross profit by $0.6 million in the fourth quarter of fiscal 2015, compared to an increase of $1.8 million in the fourth quarter of the prior year.
“The integration of the Florida business we acquired last fall is going well and we are also pleased with the performance of our other water treatment branches we have added over the last several years,” said Patrick Hawkins, Chief Executive Officer and President. “We are continuing to proactively add sales and support staff in a number of our current Water Treatment branches. While these additional expenses dampen this segment’s operating performance in the near term, these investments complement our geographic expansion strategy and position this business for future growth. ”
“We continued to face competitive pricing challenges in fiscal 2015, particularly in certain end markets within our Industrial segment. In spite of these challenges, I am pleased with our Industrial segment’s performance as we were able to grow our overall sales volumes from the prior year,” Mr. Hawkins continued. “This growth, coupled with tighter production expense controls, allowed our Industrial segment operating profit to grow by nearly 13% over the prior year.”
For fiscal 2015, Industrial segment sales were $249.1 million, an increase of 1.7% from fiscal 2014 sales of $244.9 million. Volumes increased year-over-year; however, lower raw material prices and competitive pricing pressures in certain product lines resulted in lower per-unit selling prices. Water Treatment segment sales were $115.0 million for the year, an increase of 11.2% over last year’s sales of $103.4 million. Our recently acquired Florida and Oklahoma locations accounted for $7.9 million of the total increase. In addition, growth in our newer branches and increased sales of specialty chemicals were partially offset by the impact of lower raw material prices.
Company-wide gross profit for fiscal 2015 was $65.8 million, or 18.1% of sales, compared to $61.6 million, or 17.7% of sales, for the same period of the prior year. The LIFO method of valuing inventory decreased gross profit by $0.4 million for fiscal 2015, while it increased gross profit by $1.9 million for fiscal 2014.
Gross profit for the Industrial segment was $33.6 million, or 13.5% of sales, for fiscal 2015, an increase of $1.6 million from $32.0 million, or 13.1% of sales, for fiscal 2014. The increase in gross profit dollars was driven by higher sales volumes in fiscal 2015 as compared to fiscal 2014, partially offset by lower per-unit margins due to continued competitive pricing pressures in certain product lines. The LIFO method of valuing inventory decreased gross profit in our industrial segment by $0.3 million in fiscal 2015, while it increased gross profit by $1.6 million in fiscal 2014.
The following information was filed by Hawkins Inc (HWKN) on Wednesday, May 27, 2015 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.